Palladium prices slide to 2-1/2 month low

LONDON, June 11 (Reuters) - Palladium prices fell to their
lowest since April 1 on Thursday, tracking losses in other
precious metals as expectations that the Federal Reserve is set
to hike U.S. interest rates boosted the dollar.

Palladium and its sister metal platinum have been under
pressure for much of this year from expectations that soft
demand for the metals from carmakers, who use them in catalytic
converters, will be outstripped by ample supply.

At 0939 GMT spot palladium was down 0.5 percent at
$738.65 an ounce, having earlier touched a low of $736.00. It
has fallen 7 percent so far this year.
(Reporting by Jan Harvey, editing by William Hardy)